Crowd Funding / Peer-to-Peer Lending
Crowdfunding, also known as ‘peer-to-business loans’, is the practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet. It’s an innovative way of getting a loan for your business without going to a bank.
At the heart of this relatively new sector is the notion that everyone gets a better deal. With low-interest rates for savings, and a banking culture that views risk in a different light compared to previous years, it’s hardly surprising savers and borrowers are looking for alternatives.
It’s a simple enough process to secure funding:
- You apply to a peer-to-business lending platform who assess your application and make a decision within two working days.
- Based on its financial information, your business is given a risk band. Then a loan request page is automatically posted and promoted to the private lenders registered on the site in question.
- Lenders bid to lend you money. The more bids you get, the lower the rate of interest you pay. You can also encourage your contacts to lend and pay them a return ahead of a bank.
Through our lending partners, we can help you obtain unsecured loans of up to £50k and secured loans of up to £250k. If your application is successful, you can expect to have the funds in your bank account within a month.
The qualifying criteria are:
- Terms of 6-60 months
- Loan sizes £25,000-£250,000
- Secured or unsecured loans available with fixed rates decided by the loan auction
- Limited companies, LLPs, PLCs, and social enterprises are acceptable
- Businesses must have been trading for at least two years and have two sets of annual accounts filed
- We require sight of management accounts covering 60 days prior to the date of application
- Minimum turnover of c.£200k p/a
For more information, contact our Commercial Finance Department on 020 7220 5100 or click here for more contact options.